Story updated at 10 a.m. to reflect market activity.
Shares of Bank of New York Mellon gained 0.1% to $38.44 in morning trading.
The analyst firm also raised its EPS estimates for the company through 2015. Credit Suisse analyst Ashley N. Serrao cited Bank of New York Mellon's cost cutting as a reason for the increases.
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Separately, TheStreet Ratings team rates BANK OF NEW YORK MELLON CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK OF NEW YORK MELLON CORP (BK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BK's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 0.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 366.4% when compared to the same quarter one year prior, rising from -$253.00 million to $674.00 million.
- Net operating cash flow has significantly increased by 61.55% to -$1,055.00 million when compared to the same quarter last year. In addition, BANK OF NEW YORK MELLON CORP has also vastly surpassed the industry average cash flow growth rate of -105.01%.
- You can view the full analysis from the report here: BK Ratings Report